A question mark hung over the future of Schools Minister Peter Garrett after his pledge to resign rather than serve under Kevin Rudd. The loss of experience comes as Mr Rudd and his new treasurer will need to move quickly to re-establish the government’s economic credibility in the face of a big budget deficit, a deteriorating unemployment outlook and weak tax receipts.

There are also opportunities for Mr Rudd to seize the initiative with a loyal group of former ministers ready to return to the front bench and a refreshed leadership team ready to serve the reinstalled Labor leader.

AFR
AFR

Infrastructure Minister
Anthony Albanese
was chosen as deputy after emerging as Mr Rudd’s preferred choice ahead of the March ballot, though he faced a contest from former opposition leader Simon Crean for the deputy’s spot.

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Mr Albanese won the vote 61-38, a far more resounding victory than Mr Rudd received.

Rudd supporters rewarded

Senator
Penny Wong
was unanimously elected the first female Senate leader for the ALP, while Victorian Right faction powerbroker
Bill Shorten
could be rewarded for his late switch of support from Ms Gillard to Mr Rudd.

Former Immigration Minister Chris Bowen, who is one of Mr Rudd’s chief numbers men and who initially served as assistant treasurer when Labor was elected in 2009, is in the box seat to take over the Treasury portfolio.

Former industry minister Kim Carr, another key numbers man for Mr Rudd, could be handed his old job back to oversee manufacturing policy.

Senator Carr also put his hand up for deputy leader of the Senate late on Wednesday, but he was beaten to the job by Victorian Senator Jacinta Collins.

Former opposition leader Simon Crean, who has variously held the Trade, Education, Employment, Arts and Regional Australia portfolios, could also return to the front bench.

It was Mr Crean’s resignation in March that precipitated Ms Gillard calling for a leadership ballot, but Mr Rudd did not stand and the Labor veteran was forced to go the back bench.

And key Rudd ally and numbers man Joel Fitzgibbon will also expect to return to the cabinet after being forced to resign as Defence Minister in 2009.

‘No retributions’ for Gillard backers: Rudd

An hour before the ballot, Mr Rudd publicly pledged there would be no retribution for supporters of Ms Gillard.

“If I win this ballot, every effort I have in my being will be dedicated to uniting the Australian Labor Party.

“No retributions, no pay backs, none of that stuff. It’s pointless, it’s old politics,’’ he said. But Mr Swan could not have feasibly served under Mr Rudd after he publicly accused him of having “no Labor values" in February 2012 ahead of the first leadership challenge.

Mr Swan’s performance and legacy after 5½ years as Treasurer – the longest stint for a Labor Treasurer after Paul Keating and Ben Chifley – is likely to be bitterly contested for years to come.

His time in the job coincided with the biggest global financial crisis since the Great Depression that pushed the world’s biggest economies into recessions, sent millions into unemployment and wiped out untold wealth.

Alongside then prime minister Mr Rudd and the Reserve Bank of Australia, he unleashed an unprecedented wave of stimulus that kept the domestic economy ticking over at a time when global trade shuddered to a halt.

And just like Mr Keating before him, Mr Swan was lauded by Euromoney Magazine in 2011 as the world’s finance minister of the year.

Whenever listing his achievements, he talks of the near million jobs created by the economy during his tenure; Australia’s AAA credit rating; measures to boost the aged pension; an increase in the child care rebate; and, the raising of superannuation contributions.

Swan song

Economists say Mr Swan takes a significant slice of the credit for Australia’s economic resilience in the years that followed the collapse of Lehman Brothers in September 2008, less than 10 months after he started the job.

But his critics will focus on his biggest failure – not delivering a surplus for Labor.

Mr Swan also carries much of the blame for Labor’s poorly-performing mining tax and refusal to adopt more than a narrow number of recommendations from the Henry tax review.

Resources Minister Gary Gray, who has taunted Mr Rudd to challenge for the leadership, may also be tapped to stand down after his recent public ­comments about the leadership contest.

Rising star Richard Marles, a former parliamentary secretary, may also become a minister in the revitalised front bench.